Whether you’re investing a thousand dollars or a hundred thousand, Property Income Trust cares about every penny. No gimmicks, no magic--just good sense grounded in years of Real Estate experience.

It’s time for smarter real estate investing.

Disciplined

Investments include a mix of high-quality brick and mortar locations such as medical offices and retail properties. Forget the crystal balls; we aim for robust portfolios built on solid historical foundations with an eye towards the future.

Experienced

PIT isn’t a Silicon Valley startup trying to make a quick buck. We’re real estate people with over 85 combined years of real estate experience between us. It’s just what we do. We’ve got real skin in the game–we invest 20% of all funds raised up to $10 million. When you win, we win. And we like winning.

Accessible

The days of barriers to real estate investing are gone. Let us be your partner as you take the first step to building your portfolio. Try us out and see how easy investing in real estate can be.

Somebody who knows real estate investing.

What We Do

There’s a lot of information out there about different approaches to successful real estate investing. We believe that success is a direct result of a disciplined approach backed by experience navigating today’s real estate markets. Property Income Trust relies on diversity within our investments to achieve exceptional results and stay relatively insulated from specific risks. Medical office and prime retail locations form the backbone of our strategy, creating long term gains that will help you on your path towards financial security.

Who We Are

Property Income Trust is aiming to make real estate investing affordable and accessible for everyone. We know that making an investment in real estate in a big step in securing wealth and security for your future and we want to work with you every step of the way. Our founders have worked with some of the wealthiest families in the country; it’s time for you to join them and make your investment work for you. You want somebody who knows real estate inside and out and sees you as a partner, not just an account number. We’re Property Income Trust, and we’re honored to work with you.

Popular Questions

What is Property Income Trust LLC?

We are a newly organized Delaware limited liability company which will invest in and manage a diversified portfolio of commercial real estate assets. The use of the terms “Property Income Trust”, the “Company”, “we”, “us” or “our” in this Offering Circular refer to Property Income Trust LLC unless the context indicates otherwise.

Who will choose which investments you make?

We are externally managed by our Manager, PIT Manager LLC. Our Manager will make all of our investment decisions unilaterally (see the “Management” section starting on page for details).

Who is Mascia Development LLC?

Mascia Development LLC, a New York Limited Liability Company, is our “Sponsor” and an affiliate of our Manager (see the “Overview Of Our Sponsor” starting on page for details).

How often are distributions expected to be made to Investors?

Subject to the Company’s performance and having sufficient cash flow, the Manager intends to pay distributions to all Investors on a monthly basis in arrears commencing in the first full month after the month in which we make our first real estate-related investment.

Any distributions we make will be at the sole discretion of our Manager, and will be based on, among other factors, our present and reasonably projected future cash flow. Any distributions that we make will directly impact our Company’s value and stability by reducing the amount of our assets. Our goal is to provide a reasonably predictable and stable level of current income, through monthly distributions, while at the same time maintaining a fair level of consistency in our company value. Over the course of your investment, your distributions, if any, plus the change in Share price (either positive or negative) will produce your “Total Return”.

Why should someone invest in commercial real estate investments?

Our goal is to provide a professionally managed, diversified portfolio of high-quality commercial real estate assets to investors who generally have had limited access to such investments in the past. Allocating some portion of your portfolio to a direct investment in high-quality commercial real estate assets may provide you with:

a reasonably predictable and stable level of current income from the investment;

diversification of your portfolio, by investing in an asset class that historically has not been correlated with the stock market generally;

potential hedge against inflation;

availably of attractive debt financing; and

the opportunity for capital appreciation.

Why focus on medical properties?

On top of the aforementioned reasons to invest in commercial real estate there are also some strong benefits to investing specifically in medical office properties. Some of the benefits are described now. Thanks to the aging baby boomers, there is a long-term demographic trend toward an aging population and higher medical spending per capita, all favoring the healthcare industry growth. The Affordable Care Act is further expected to increase medical spending among consumers nationwide not just the aging population. Medical professionals as office users are historically less likely to change locations than other office users, because of the substantial capital investments required in facilities and equipment, which makes them stable attractive long-term tenants. Higher predictability of returns due to long-term nature of leases and tenant responsibility for most operating costs and opportunity for growth in cash flow and valuation due to contractual rent increases.

Why focus on retail properties?

Again, retail properties benefit from all of the commercial real estate investment benefits described above, but retail properties specifically have some additional benefits described here. We believe the fear among other real estate investors that internet retailers such as Amazon.com and the like, will “kill brick-and-mortar retailers” is overblown/oversold.

This fear creates attractive investment opportunities in the retail property sector currently. To avoid competing with the online retailers the retail properties we focus on are those that are evolving towards more service and convenience-oriented offerings (e.g., restaurants, hair and/or nail salons, medical oriented services, etc.) that are difficult or impossible to outsource online at this time. Retail properties also have higher predictability of returns due to long-term nature of leases and tenant responsibility for most operating costs and opportunity for growth in cash flow and valuation due to contractual rent increases. Furthermore, retail has greater access to the increased revenue in times of a growing economy because the U.S. is a predominantly consumer based economy.

Why not invest only in retail and medical office?

Our investment strategy is based on a “contrarian” or “value” investment thesis, meaning we typically invest counter to the common market sentiment to achieve maximum value.

Similar to Warren Buffett’s “Be fearful when others are greedy and greedy when others are fearful” and Sir John Templeton’s “Invest at the point of maximum pessimism” quotes, we focus on finding those real estate properties that are “out of favor” and therefore have high relative current returns with strong long term growth possibilities. In the current market cycle, we believe retail and medical office sectors in secondary and tertiary markets are the most out of favor and so therefore have the most opportunity but this will not always be the case. We must have a flexible investment selection criteria that allows us to purchase those real estate product types that will maximize our returns to Investors long term.

How is an investment in the Company’s Series A Investor Shares different from investing in Series A Investor Shares of a publicly traded Real Estate Investment Trust (also known as a REIT)?

This is not meant to be an exhaustive list of differences between a REIT and our Series A Investor Shares, but merely a highlight of the main differences. For further details, please consult your investment and tax advisor.

First and foremost, we will not be structured as a REIT or C-corporation. Instead, we are a Delaware limited liability company, or “LLC,” taxed as a partnership, which is a pass-through tax entity. Investors will receive a K-1 tax form with income from multiple states requiring multistate filing versus a form 1099 as provided by most REITs. As result of purchasing Series A Investor Shares and thus receiving a K-1 tax form, you will experience additional complexity and potentially substantial additional cost when filing your personal tax returns. The Company will not be responsible for assisting Investors with their tax complexity or costs.

Investors in a real estate LLC usually hope that the pass-through entity will have sufficient depreciation, interest expense, and other deductions to shelter the cash flow from the property and keep a majority of the distribution tax deferred until sale. These shelters might permit the Investors to receive a return similar to a tax-exempt bond – except that real estate returns have historically been substantially higher compared to tax-exempt bonds because of the additional risk associated with real estate. REITS are not fully able to take advantage of these benefits to the extent that LLCs are. There can be no guarantee this will continue or that we will be able to take full advantage of this but it is true as of the date of this Offering Circular and we plan to attempt to continue achieving similar results.

A further difference between our Series A Investor Shares and a public REIT is the daily liquidity available with a publicly listed REIT. Although we have adopted a redemption policy (see the “Redemption Policy” section starting on page for further detail) that attempts to allow investors to redeem Series A Investor Shares on an annual basis, we do not have nearly the same liquidity as a fully public company. We also hope to have our Series A Investor Shares listed on the OTCQX market after the Company has issued $50,000,000 of Series A Investor Shares (see the “Transfers” section starting on page ), but there is no guarantee we will be successful in doing so. Therefore, for investors with a short-term investment horizon, a listed REIT is likely a better alternative than investing in our illiquid Series A Investor Shares. Valuations of a listed REIT are also more transparent and established than the valuation of our Series A Investor Shares. However, we believe our Series A Investor Shares will have lower correlation to the general stock market than listed REITs.

As of the date of this Offering Circular, the overall listed-REIT sector has recently been trading near all-time highs, with the Investor Series A Investor Shares version of the Vanguard REIT Index Fund (ticker: VGSIX, a mutual fund comprised of 153 public REIT stocks and requiring a $3,000 minimum investment) is yielding generally less than 3.0% after expenses, over the last few years. We believe such pricing suggests that a substantial portion of the price of listed REITs is attributable to a built-in liquidity premium, as recent unlevered capitalization rates on real estate transactions in the private sector have averaged 5.35% – 7.15%, according to a recent “Real Estate Investor Survey” report published by PWC from Q4 2015. Additionally, public REITs are subject to more demanding public disclosure and corporate governance requirements than we will be subject to. While we are subject to the scaled reporting requirements of Regulation A, such periodic reports are substantially less than what would be required for a public REIT.

How is an investment in your Series A Investor Shares different from investing in Series A Investor Shares of a private non-exchange traded REIT?

The primary difference is that we neither charge nor do we intend to pay any broker-dealer distribution fees, which represents a savings to Investors of approximately 70% to 90% in upfront expenses as compared to a traditional non-exchange traded REIT.

Traditional private non-exchange traded REITs use a highly manpower-intensive method with hundreds of sales brokers calling on investors to actively sell their offerings. Our Manager plans to utilize multiple low cost digital platforms, which we intend to leverage in conducting this Offering, thus reducing the financial burdens to the Company of offering our Series A Investor Shares to the public. Another difference is we have a low minimum initial investment whereas many traditional non-exchange traded REITs have minimums well in excess of $50,000. Our lower minimum should allow investors the ability to invest in our Series A Investor Shares and many other investments which could create a more diverse investment portfolio overall.

How is an investment in your Series A Investor Shares different from investing in Series A Investor Shares of other real estate investment opportunities offered by online real estate investment platforms, sometimes called crowdfunding platforms?

We are one of only a few real estate investment companies available to both accredited and non-accredited investors offered directly over the internet. Currently, online investment platforms typically offer individual property investments as private placements to accredited investors only.

We intend to own a more diversified portfolio, that is accessible to both accredited and non-accredited investors at a low investment minimum. We are operated and advised by real estate professionals, not technology people as is typical in so called crowdfunding platforms, therefore real estate investment and operations not technology is our only business. With other online investment opportunities/crowdfunding you have to select each and every investment you make by yourself – not only is this time consuming, but it can add a great deal of risk to your investments unless you are an experienced real estate investor with a high degree of industry knowledge. By having an experienced real estate management team select our real estate investments you should achieve better results over a longer time period.

Does the Manager (and/or its Affiliates) have any capital invested (a/k/a “skin in the game”)?

Yes. Our Manager and/or its affiliates shall make a combined equity investment in an expected amount of 20% of the total Series A Investor Shares outstanding, up to a maximum of $10,000,000 at the initial $25 per Share price. The money will be invested over time to match the 20% of total Series A Investor Shares outstanding until a maximum $10,000,000 has been invested. This investment will represent a significant portion of the net worth of the CEO and COO of our Sponsor, helping to ensure alignment of interests between management and Investors.

Who might benefit from an investment in our Series A Investor Shares?

An investment in our Series A Investor Shares may be beneficial for you if you seek to diversify your investment portfolio with some commercial real estate, seek to receive current income, seek to preserve capital and are able to hold your investment for a long term time period consistent with our liquidity strategy. On the other hand, we caution persons who require immediate liquidity or guaranteed income, or who seek a short-term investment, to consider that an investment in our Series A Investor Shares will not meet those needs.

Pages

Articles

Invest

Nothing herein should be regarded as investment advice or as a recommendation regarding any particular investment or course of action. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn.